Proposals to regulate private credit ratings spark alarm

PARIS – Industry participants have warned that proposals from the European Securities and Markets Authority (ESMA) to require disclosure of underlying asset performance on privately placed securitisation deals could jeopardise the market. In response to the ESMA consultation on the implementation of the EU credit ratings agency regulation CRAIII, which closed in April 2014, most attention from respondents focused on the agency’s interpretation of article 8b.